Albany, NY (Dec. 12, 2000) - - - The Albany County Airport Authority today turned to the technology of the Internet to quickly sell $14.5 million in bonds, the proceeds of which will be used to construct the new New York State Police Executive Hangar. The sale took place through a special Internet auction during which investment firms were able to bid for the bonds.

"We believe the Internet provided the Authority with exposure to the largest number of qualified bidders," said Rev. Michael A. Farano, Chairman of the Albany County Airport Authority. "It's the ultimate in Internet auctions and we are more than pleased with the results of the sale."

The Airport Authority was linked to the auction's web site through a laptop computer. The computer's output was projected on a large video screen in the Airport's Business Center for the Authority's financial and legal staff members and consultants to watch as the bids were received through the Internet.

Salomon Smith Barney, one of four firms that bid during the 30-minute Internet auction, purchased the entire 30-year bond offering with a winning term interest cost bid of 5.31 percent.

The bond sale came as Moody's assigned an A3 underlying rating to the Authority's new revenue bonds and upgraded the rating on all of the Authority's other $122.4 million outstanding parity bonds. Moody's said the rating reflected the Authority's recent "addition of Southwest Airlines, strong financial performance and the successful completion of a major capital improvement program." In issuing its rating, Moody's said, "the addition of Southwest will significantly enhance the airport's competitive position in its air trade market." The A3 rating reflects the Airport's growth in performance and solid financial record.

The New York State Police Executive Hangar will accommodate the state's fleet of helicopters and fixed-wing aircraft. Construction of the hangar is expected to begin soon with completion expected by the fall of 2001. The hangar will be leased to the state and the lease payments will be used to retire the bonds.

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